The potential financing package will consist of up to EUR 2 billion from the EIB, up to EUR 1.2 billion from the EBRD (up to EUR 600 million for EBRD"s account and up to EUR 600 million to be syndicated to commercial banks) and up to around EUR 800 million from IFC (up to EUR 400 million for IFC"s account and up to EUR 400 million to be syndicated to commercial banks).
The mandate letter formalizes the conditions under which the three IFIs will conduct their appraisal of the Nabucco project, and provides an indication of the potential level of financing. It sets out the work that will be required before a final financing decision can be taken.
The involvement of the three IFIs is a demonstration of global and European support for the project and represents an important milestone in ensuring the overall financing of Nabucco. The early involvement of the IFIs will support Nabucco in meeting the highest standards in environmental and social risk evaluation and procurement. The appraisal of the project will include a thorough assessment of commercial, social and environmental aspects.
The Nabucco gas pipeline project addresses the EU"s priority goal of achieving energy security via the diversification of gas routes and gas supplies. It will deliver additional volumes of gas from different sources through a new supply route to the EU member states and their neighbours. Nabucco provides a strategic solution by enabling the transport of gas from both the Caspian Region and the Middle East.
Following the successful conclusion of the appraisal, the financing will need to be approved by the relevant governing bodies of each IFI. Export credit agencies and international banks are expected to commence their appraisal of the Nabucco project soon after the IFIs. Commitments from potential lenders are expected to be sought in 2011.
* Nabucco is the new gas bridge from Asia to Europe. It will directly connect the world"s richest gas regions - the Caspian region and the Middle East - to the European consumer markets. The pipeline will link the Eastern border of Turkey to Baumgarten in Austria - one of the most important gas turntables in Central Europe - via Bulgaria, Romania and Hungary.
The Nabucco shareholders are: Bulgarian Energy Holding (Bulgaria), Botas (Turkey), MOL (Hungary), OMV (Austria), RWE (Germany) and Transgaz (Romania), Each shareholder holds an equal share of 16.67% of Nabucco Gas Pipeline International GmbH. The shareholders are responsible for negotiating the gas supply contracts.-0--
Economics
-
Recently, the prices of certain food items have increased in Azerbaijan. This is also reflected in the data released today, September 11, by the State Statistics Committee (SSC). It was noted that in August, compared to July, there were price increases in rice, beef, lamb, sausage products, butter, olive oil, and onions.
-
From January to August 2024, Azerbaijan’s retail trade network saw sales reach 37.2 billion manats, with consumers spending 20.6 billion manats on food products, beverages, and tobacco, and 16.6 billion manats on non-food items. This growth comes as retail turnover increased by 3.5% in real terms compared to the same period last year, according to data from the State Statistics Committee.
-
Azerbaijan's industrial output from January to August 2024 reached 42.4 billion manats, driven by contributions from both industrial enterprises and individual entrepreneurs. However, despite this robust performance, shifts within key sectors highlight the evolving dynamics of the nation's economy.
-
Azerbaijan, despite its larger natural and labor resources, is trailing behind its smaller neighbors Georgia and Armenia in banking sector development, according to Samir Aliyev, head of the Union for Economic Initiatives Support. His analysis of the financial performance of South Caucasus countries during the first half of 2024 paints a stark contrast to the country’s image as the economic leader of the region.
Leave a review